DEX Token GMX Jumps 26% In A Month As FTX Collapse Triggers Interest In Decentralized Exchanges

Zinger Key Points
  • The best performers in November have been decentralized exchange tokens, due to the rise in demand.
  • Even with a subdued market, the decentralized exchange token GMX rallies 26% in a month.
DEX Token GMX Jumps 26% In A Month As FTX Collapse Triggers Interest In Decentralized Exchanges

The collapse of cryptocurrency exchange FTX FTT/USD and other high-profile crypto firms amid a prolonged crypto winter has piqued users' interest in decentralized exchanges now that there is a gap in the perpetual market.

One of the top performers over the past month has been the native token of the decentralized perpetual exchange GMX GMX/USD, which increased by about 26% despite an unfavorable cryptocurrency market, which as a whole decreased by about 20% during the past month, according to data from CoinGecko.

Gains Network, a decentralized leveraged trading platform on Polygon MATIC/USD and Uniswap UNI/USD are some of the other platforms that have benefited from users' exodus to decentralized platforms.

Also Read: This Crypto Firm Is Promoting Ex-CFTC Commissioner Brian Quintenz To Policy Head

What Is GMX And Why Is It Popular Right Now?

Users can trade several cryptocurrencies, including Bitcoin BTC/USD, Ethereum ETH/USD and other well-known digital assets straight from their crypto wallets using the decentralized futures trading platform GMX.

Contrary to centralized platforms such as Binance BNB/USD and Coinbase Global Inc COIN, GMX is non-custodial and does not hold users' money in trust and instead, uses smart contracts to enable trustless leveraged trading.

Due to the collapse of FTX, the platform's popularity has increased during the last several weeks.

The FTX collapse caused millions of retail customers to lose their entire life savings, giving the maxim, "Not your keys, not your coins," a fresh life.

GMX first saw a significant plunge alongside the broader crypto market following the FTX collapse, but demand for the project and native token grew.

GMX swiftly increased from its monthly low of $26.38 on Nov. 10 to a local high of almost $46 on Nov. 14.

For the remainder of November, GMX was able to hold onto its gains, recording a modest price increase while avoiding any significant declines.

The coin is currently down 3.5% over the last 24 hours and trading at $51.52, a modest correction after a stupendous rally.

Notably, on Dec. 1, when traders assessed the decentralized exchange's ability to emerge as a big threat to its primary rival Uniswap, GMX rose to $54.50, its second-highest position in history.

Strong Numbers

With a 128% growth in yearly trading volume and a 31% increase in daily active users, GMX’s revenue increased by 107% to $5 million in November.

In contrast, Uniswap saw an increase in daily active users of 8% and annualized income of nearly 75%.

Similarly, decentralized exchanges have experienced a record-breaking increase in trading volume.

For instance, the yearly trading volume on GMX has increased by 128%, while the number of daily active users has increased by 31%.

Similarly, Uniswap witnessed an 8% increase in daily active users and a roughly 75% increase in yearly revenue.

Additionally, GMX's revenue grew by 107%, hitting $5 million in November. Notably, on Nov. 20, the platform's trading fees set a record of $1.15 million, beating Uniswap's $1.06 million for the first time ever.

Read Next: FTX Collapse Jolts UK Into Adding Crypto Rules, Oversight To Latest Legislation

Photo: NicoElNino via Shutterstock

Posted In: crypto wintercryptocurrenciesDecentralized Exchangesdecentralized financedecentralized tokensCryptocurrencyNewsMarkets